The global packaging giant posted its results for the year ended 30 June 2012 this morning (21 August).
It said that it had achieved record profit after tax of $634.9m, up 11.3%, compared to the same period last year. It also announced that profit after tax and significant items of $412.6m, up 15.7%.
“During the global financial crisis the business undertook two transformational acquisitions, purchasing Alcan Packaging and Ball Plastic Packaging,” said Amcor chief executive Ken MacKenzie. “The integration programs for both acquisitions are ahead of schedule in terms of timing and total synergy benefits. These improvements have been a key component of earnings growth for the year.”
Flexibles
Its Flexibles business – which includes its Flexibles Europe & Americas division, Flexibles Asia Pacific, and Tobacco Packaging businesses – saw a 16.9% jump to €526.5m ($620.9 million) while sales revenue for the year rose by 2.3% to €4.68 billion.
Sales volumes in Amcor’s developed markets remained stable, MacKenzie said, reflecting the subdued economic conditions in these economies.
“Amcor has 85% of its sales in the defensive food, beverage and healthcare markets which have proven to be resilient over the last three years,” he said.
‘Continued growth in the emerging markets’
Emerging markets including Asia and Eastern Europe experienced strong sales growth.
The company’s flexibles segment is expected to achieve a solid increase in earnings in the next year, Amcor said with continued growth in the emerging markets and from recent acquisitions in Australasia, Mexico, Argentina and India.
It said its flexibles business in Thailand had a solid year. The firm said that it was an outstanding outcome given the significant challenges presented by severe flooding through the December 2011 quarter.
Amcor’s Rigid Plastics business recorded a 13.4% increase in profit before interest and tax to $US272.5 million ($260 million) as synergy benefits from the Ball Plastics Packaging purchase flowed through.
However, profit before interest and tax for Amcor’s Australasia and Packaging Distribution business fell 4.5% to $152.5m, adjusting for the $7m in asset sales in the previous year as the effects of the strong Australian currency weighed on earnings.
Plant closures
The firm also announced the closure of a small plant in Drammen, Norway.
The plant is expected to cease operation in October 2012. According to Amcor, closures announced in prior periods have proceeded as planned as benefits from the plant closure in Viersen, Germany being realised in the second half of the financial year.
Amcor said its new recycled paper mill in Botany in New South Wales, was expected to begin commissioning next month. A limited number of paper grades will be initially run with full production due within 18 to 24 months, and delivering cost savings of approximately $50m.
Amcor’s full year results
